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Elder Pharmaceuticals shines on creating joint venture with KOSE Corporation of Japan

07 Mar 2013 Evaluate

Elder Pharmaceuticals is currently trading at Rs 334.45, up by 14.35 points or 4.48% from its previous closing of Rs 320.10 on the BSE.

The scrip opened at Rs 328.00 and has touched a high and low of Rs 339.00 and Rs 328.00 respectively. So far 12567 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 474.00 on 05-Dec-2012 and a 52 week low of Rs 267.05 on 16-Aug-2012.

Last one week high and low of the scrip stood at Rs 339.00 and Rs 301.60 respectively. The current market cap of the company is Rs 657.39 crore.

The promoters holding in the company stood at 39.89% while Institutions and Non-Institutions held 22.92% and 37.18% respectively.

Elder Pharmaceuticals, a leading pharmaceuticals company in India, having consolidated turnover in excess of Rs 1,350 crore for FY12 and ranked 27 amongst Indian pharmaceutical companies as per IMS Report October 2012, has agreed to establish a Joint Venture Company (JVC) with KOSE Corporation (KOSE) with the provisional name of KOSE Elder (India).

On March 6, 2013 both the companies have, subject to the fulfillment of certain terms and conditions finalized terms and conditions of the joint venture contract. The agreement stipulates that KOSE will focus on the Indian market, through the JVC for manufacturing and selling cosmetics in India. KOSE will hold 60% and Elder to hold 40% in the proposed JV. Elder has successfully established and run subsidiaries abroad and with alliance with KOSE, Elder is foraying into its maiden joint Venture arrangement in India with a Japanese company.

KOSE’s key means of advancing into overseas markets up to now has been to export from Japan only those of its existing brand products that matched the requirements of the target country’s market, but in India, where culture and tastes are very different, they have considered it essential to undertake strategic and business planning tailored to the region, and are proceeding with investigations through agreements with local enterprises that are familiar with the markets.

Elder Pharmaceuticals (EPL) has around six manufacturing units in India, all as per international standards. Post increasing its stake in Elder Biomeda AD and Neutrahealth PLC, EPL also has access to the manufacturing units of these companies in Bulgaria and Birmingham, UK respectively coupled with distribution network and brands of the same.

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